The Bank for International Settlements (BIS) has come under intense scrutiny from figures within the cryptocurrency sector following its recent report urging a clearer distinction between digital assets and traditional financial systems.
Christopher Perkins, the president of the blockchain investment firm CoinFund, characterized the BIS’s proposals as “dangerous” and “uninformed,” cautioning that such measures could have negative repercussions for the global financial landscape.
On April 19, Perkins took to X to voice his concerns regarding the BIS’s April 15 report titled “Cryptocurrencies and Decentralized Finance: Functions and Financial Stability Implications.”
CoinFund President Critiques BIS ‘Containment’ Strategy as Ill-Informed
Perkins criticized the report’s recommendation for a “containment” strategy regarding cryptocurrencies, asserting that it stems from a place of fear and a lack of understanding about the technology involved.
“Crypto is not communism,” Perkins stated. “It’s the new internet that provides anyone with a connection access to financial services. You cannot control it any more than you control the internet.”
The CoinFund president highlighted that creating barriers around the crypto ecosystem could lead to significant liquidity risks in the broader financial system, especially given that cryptocurrency markets operate continuously, unlike traditional financial markets bound by set trading hours.
“If implemented, [these policies] will cause — not mitigate — the systemic risk they seek to prevent,” he warned.
The @BIS_org just published a new paper, “Cryptocurrencies and decentralised finance: functions and financial stability implications.” The good news is that the authors finally realize that advancements in crypto (including the growth of ETFs, stablecoins and tokenized real world…
— Christopher Perkins NYC (@perkinscr97) April 19, 2025
The BIS report raised alarms about the rapid expansion of cryptocurrency and decentralized finance (DeFi) markets, cautioning that the surge in capital and participants could destabilize established markets and elevate risks for investors.
In response, Perkins argued that DeFi actually presents enhancements over conventional finance by offering greater transparency and less dependence on centralized intermediaries.
Addressing the BIS’s concerns regarding the anonymity of DeFi developers, he pointed out that many traditional financial institutions also do not disclose their developer information.
“Certainly, public companies provide a degree of transparency, but they appear to be fading away in favor of private markets,” he stated.
Perkins then took issue with the BIS’s claims that stablecoins could threaten monetary policy in nations like Venezuela and Zimbabwe.
“If there is demand for USD stablecoins and it helps improve the condition of anyone in the developing world, perhaps that is a good thing,” Perkins remarked.
Others joined Perkins in his critique. Christian Catalini, co-founder of Lightspark, deemed the BIS’s approach outdated, likening it to “writing parking regulations for a fleet of self-driving drones — earnest work, two technological leaps behind.”
1/ The @BIS_org just published a blueprint for “containing” crypto and DeFi. Think: writing parking regulations for a fleet of self‑driving drones — earnest work, two technological leaps behind. pic.twitter.com/11C8UaDuJM
— Christian Catalini (@ccatalini) April 19, 2025
US Crypto Owners Anticipate Regulatory Shift
In the United States, regulations surrounding cryptocurrency may become less stringent under the anticipated administration of Republican President-elect Donald Trump, as expectations for regulatory focus appear to evolve.
At a recent legal conference in New York, current and former senior government lawyers indicated that while cases involving financial fraud will remain a priority, the Justice Department’s emphasis may pivot towards immigration enforcement, a significant component of Trump’s campaign pledges.
Scott Hartman, co-chief of the securities and commodities task force at the U.S. Attorney’s Office in Manhattan, confirmed that fewer resources will be directed toward tracking cryptocurrency-related crimes.
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